To Mike 

Please be in Pilgrim 3F Room 314 by 3:30pm

Introduce yourself. “I am Atty. Michael Arao and I will be your substitute teacher for today.”

ANNOUNCEMENTS:
A.
3:30 to 4:30 – we will be listening to the reports on installment sales of
a. Real property (RA 6552 or Maceda Law) – Ms. Rojo and Ms. Macarayon
b. Subdivision Lots and Condominium (PD 957 or The Subdivision and
Condominium Buyers’ Protective Decree) – Mr. Abbas, Rafsanjanie
c. Personal Property (Art 1484 or Recto Law) – Mr. (chubby chinky guy)

4:30 – we will be having a quiz on topics previously discussed and topics today

B.
On August 17, you will be having your midterms.
4pm – we will be checking the quiz, and discussing a few topics
5pm – we will start the midterm exams. Also multiple choice.
 LAW ON SALES
QUIZ
Atty. Abigail Co

INSTRUCTIONS. Do not write anything on this questionnaire. Use a ¼ yellow paper as your
answer sheet. Write the letters of your choice in CAPITAL LETTERS. Submit this questionnaire
together with your answer sheet upon finishing.
Anyone caught cheating – looking at your seatmate or seatmate’s paper or talking to your
seatmate about anything related or unrelated to the quiz – will automatically get a ZERO. For
any questions or clarifications, you may approach the instructor.
Good luck! 

1. In a contract of sale of personal property, the price of which is payable in installments, the vendor
may exercise any of the following remedies, except:
a. Exact fulfillment of the obligation, should the vendee fail to pay any number of installments.
b. Cancel the sale, should the vendee fail to pay two or more installments.
c. Foreclose the chattel mortgage on the property if the vendee fails to pay two or more
installments, and recover the deficiency after the foreclosure sale if they have stipulated it.
d. Foreclose the chattel mortgage on the property if the vendee fails to pay two or more
installments, and recover the deficiency after the foreclosure sale but he may no longer
recover the deficiency after the foreclosure sale.

2. The Maceda Law is applicable to sales or transactions involving:

a. Industrial lots
b. Commercial buildings
c. Residential lots
d. Sales to tenants under the Land Reform Law

3. The Recto Law is applicable to sales or transactions involving the following, except:
a. Electronics and other gadgets
b. Farm or agricultural lots
c. Jewelry and precious stones
d. Automotive and motorcycle

4. Under the Maceda Law, the following are the rights of the buyer during the grace period, before
the cancellation of the contract, except:
a. To sell his rights to another through a private instrument
b. To assign his rights to another, by notarial act
c. To reinstate the contract by updating the contract
d. To pay in advance any installment or the full unpaid balance any time without interest

5. PD 957, otherwise known as The Subdivision and Condominium Buyers’ Protective Decree covers
transactions involving the following, except:
a. Subdivision lot
b. Condominium unit
c. Building and improvements in a subdivision project
d. Common areas in a condominium project
6. S stole the ring of O. Subsequently, S sold the ring to X, who was not aware that the ring was
stolen. O saw the ring with X, and recognized it as his. Which of the following statements is
incorrect?
a. O may recover the ring from X without needing to reimburse X since O was unlawfully
deprived of the ring.
b. O may recover the ring from X but he has to reimburse X since X acquired title to the ring.
c. X did not acquire title to the ring even if he bought the ring from S.
d. X did not acquire title to the ring since S had no valid title thereto.

7. S stole the ring of O. Subsequently, the ring was sold at a public auction to X, who was not aware
that the ring was stolen. O saw the ring with X, and recognized it as his. Which of the following
statements is correct?
a. O may recover the ring from X without needing to reimburse X since O was unlawfully
deprived of the ring.
b. O may recover the ring from X but he has to reimburse X since X acquired title to the ring.
c. O may no longer recover the ring even if he is willing to reimburse X.
d. X did not acquire title to the ring since S had no valid title thereto.

8. S stole the ring of O. Subsequently, the ring was found at a jewelry store (merchant’s store) and
was sold to X, who was not aware that the ring was stolen. O saw the ring with X, and recognized
it as his. Which of the following statements is correct?
a. O may recover the ring from X without needing to reimburse X since O was unlawfully
deprived of the ring.
b. O may recover the ring from X but he has to reimburse X since X acquired title to the ring.
c. O may no longer recover the ring even if he is willing to reimburse X.
d. X did not acquire title to the ring since S had no valid title thereto.

9. An unpaid seller has the following rights, except:

a. A lien on the goods or the right to retain them for the price while he is in possession of
them
b. In case of insolvency of the buyer, a right of stopping the goods in transitu after he has
parted with the possession of them
c. Right of repurchase
d. Right to rescind

10. One of the distinction between option money and earnest money is that earnest money is:
a. The consideration paid for the purpose of holding one to his promise to buy or sell a
determinate thing for a certain period of time
b. Not part of the purchase price
c. Proof of the perfection of the contract of sale
d. Paid before the perfection of the contract of sale
 LAW ON SALES
QUIZ ANSWER SHEET
Atty. Abigail Co

INSTRUCTIONS. Do not write anything on this questionnaire. Use a ¼ yellow paper as your
answer sheet. Write the letters of your choice in CAPITAL LETTERS. Submit this
questionnaire together with your answer sheet upon finishing.
Anyone caught cheating – looking at your seatmate or seatmate’s paper or talking to your
seatmate about anything related or unrelated to the quiz – will automatically get a ZERO. For
any questions or clarifications, you may approach the instructor.
Good luck! 

1) In a contract of sale of personal property, the price of which is payable in installments, the
vendor may exercise any of the following remedies, except:
a. Exact fulfillment of the obligation, should the vendee fail to pay any number of installments.
b. Cancel the sale, should the vendee fail to pay two or more installments.
c. Foreclose the chattel mortgage on the property if the vendee fails to pay two or more
installments, and recover the deficiency after the foreclosure sale if they have stipulated it.
d. Foreclose the chattel mortgage on the property if the vendee fails to pay two or more
installments, and recover the deficiency after the foreclosure sale but he may no longer
recover the deficiency after the foreclosure sale.

2) The Maceda Law is applicable to sales or transactions involving:

a. Industrial lots
b. Commercial buildings
c. Residential lots
d. Sales to tenants under the Land Reform Law

3) The Recto Law is applicable to sales or transactions involving the following, except:
a. Electronics and other gadgets
b. Farm or agricultural lots
c. Jewelry and precious stones
d. Automotive and motorcycle

4) Under the Maceda Law, the following are the rights of the buyer during the grace period, before
the cancellation of the contract, except:
a. To sell his rights to another through a private instrument
b. To assign his rights to another, by notarial act
c. To reinstate the contract by updating the contract
d. To pay in advance any installment or the full unpaid balance any time without interest

5) PD 957, otherwise known as The Subdivision and Condominium Buyers’ Protective Decree covers
transactions involving the following, except:
a. Subdivision lot
b. Condominium unit
c. Building and improvements in a subdivision project
d. Common areas in a condominium project
6) S stole the ring of O. Subsequently, S sold the ring to X, who was not aware that the ring was
stolen. O saw the ring with X, and recognized it as his. Which of the following statements is
incorrect?
a. O may recover the ring from X without needing to reimburse X since O was unlawfully
deprived of the ring.
b. O may recover the ring from X but he has to reimburse X since X acquired title to the
ring.
c. X did not acquire title to the ring even if he bought the ring from S.
d. X did not acquire title to the ring since S had no valid title thereto.

7) S stole the ring of O. Subsequently, the ring was sold at a public auction to X, who was not aware
that the ring was stolen. O saw the ring with X, and recognized it as his. Which of the following
statements is correct?
a. O may recover the ring from X without needing to reimburse X since O was unlawfully
deprived of the ring.
b. O may recover the ring from X but he has to reimburse X since X acquired title to the
ring.
c. O may no longer recover the ring even if he is willing to reimburse X.
d. X did not acquire title to the ring since S had no valid title thereto.

8) S stole the ring of O. Subsequently, the ring was found at a jewelry store (merchant’s store) and
was sold to X, who was not aware that the ring was stolen. O saw the ring with X, and
recognized it as his. Which of the following statements is correct?
a. O may recover the ring from X without needing to reimburse X since O was unlawfully
deprived of the ring.
b. O may recover the ring from X but he has to reimburse X since X acquired title to the
ring.
c. O may no longer recover the ring even if he is willing to reimburse X.
d. X did not acquire title to the ring since S had no valid title thereto.

9) An unpaid seller has the following rights, except:

a. A lien on the goods or the right to retain them for the price while he is in possession of
them
b. In case of insolvency of the buyer, a right of stopping the goods in transitu after he has
parted with the possession of them
c. Right of repurchase
d. Right to rescind

10) One of the distinction between option money and earnest money is that earnest money is:
a. The consideration paid for the purpose of holding one to his promise to buy or sell a
determinate thing for a certain period of time
b. Not part of the purchase price
c. Proof of the perfection of the contract of sale
d. Paid before the perfection of the contract of sale